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A analysis of the Virgin Group

Founded in 1970 as Virgin Details, the business has widened to a humongous organization comprising greater than 200 companies in 2007. Its business collection ranges from air travel, fitness centers, and mobile telephony. Since its inception, the culture and image of Virgin Group has been immediately related to the personality and efforts of its owner and founder, the high-ranking executive and businessperson Sir Richard Branson. It creates no sense to delink Virgin Group from Sir Branson. Actually, the name Branson is almost becoming synonymous with Virgin Group. This essay aims to provide several areas of Virgin group. Included in these are the critical evaluation of its organizational model, the command of Sir Richard Branson and finally organization's communication.


Virgin Group comprises of more than 200 companies, which use almost 50, 000 people all around the globe. The business enterprise has observed continual development since it was began. The revenues come to a record symbol of 10 billion sterling pounds in the entire year 2006. This shows the magnitude and level of business in which Virgin Group is operating. The type of leadership around in Virgin Group attracts many features from the personality of Sir Richard Branson. The business enterprise idea postulated by Sir Richard Branson feels that the ultimate results of customer satisfaction and shareholders' gain is the responsibility of every individual. He feels that if the staffs are placed happy then your customers are going to be happy meaning that the shareholders will be happy too. Consequently, the management of Virgin Group will not fall in to any particular model. It offers a unique management structure whose characteristics do unfit those of the existing models. The amalgamation of concepts makes it distinctive. A critical review uncovers that the success observed by Virgin Group can be attributed to the uniqueness of its management styles.

Management Theorists like F Taylor first created the idea of medical management. This medical concept postulates that we now have six main features of management, namely; test, observation, selection, standardization, and training. Scientific school of thought of management expects that rewards and staff reimbursement should be pecked on performance and co-operation. Even though some areas of this theory are out-of-date, a few of its features are still applicable in the business structure of modern times. Like a good illustration, Virgin group may be having what appears as a calm working environment but some features of methodical management are in request. Such areas of scientific management found in Virgin Group include training, selection, and payment pecked on results. Some employees are paid out because of their spectacular entrepreneurial ambition and ground breaking thinking. Spectacular performance in Virgin Group isn't just measure by the quantity of financial input an employee has brought but also creativity and ability to believe outside the container. Another model of management is bureaucracy, which considers the business of business as you unit. The pioneers of this approach thought that family techniques cannot be delinked from the business. Therefore, there a need to merge family goals with those of the whole organization.

Organizational goals of Virgin Group cannot be dissociated with those of Sir Richard Branson. This is enough reason to conclude that the management style in the organization has some components of bureaucracy in command. Utmost Weber first produced this kind of management strategy. The impact of complete society is given extensive attention by the management. In this model, the organization is recognized as a fundamental element of an amorphous world. Despite having some draw backs, this model has found its way into the Virgin Group's management style. In the bid to meet the needs of the culture it is portion, virgin management give goal to the impact, its strategies will have on the contemporary society. This is why as to the reasons Virgin Atlantic, an flight company under Virgin Group, has been on the frontline on the crusade for green jet gas.

Furthermore, there can be an element of administrative theory in the management of Virgin Group. Propounded by Henry Fayol, administrative theory view management as a chronological process comprising of planning, group, training, and coordination of functions. This model signifies the transitional theory between the traditional and modern models. It really is seen as a rigid and mechanistic tenets. Virgin Group has a little bit of these management concepts. It has deviated from it by allowing liberalized management at departmental level. However, at the departmental levels, there is certainly need to progress the guidelines of management. The thoughts of employees should stay to be customized to suit these principles.

The management of Virgin group with much weight is contingency way. The decision-making and strategies executions are done with close mention of the problem at hand. This has seen the group attain distinctive milestones in streamlining its management, which eventually translates directly into revenues. In this particular management model, the dynamics of business environments is valued. It recognizes the actual fact that different conditions require different management methods.

Concisely, it holds true to claim that Virgin Group's success tale of several years is one factor of several things including it best management model. The group has been able to amalgamate the presets of each model to match its present needs. What's emerging vividly from this global organization is the actual fact that the effectiveness of management is determined by its ability to go away from conventional and rigid requirements. Moving with the fads on the market has been proven beneficial in marketing of earnings.

From the descriptions given above, it is visible that Virgin Group control is a transformational. In transformational management the management appears beyond the reimbursement to the employees. The model, which is used at Virgin Group, explores the interior factors, which improve performance of employees through inspiration. On unlike transactional model, which take a look at compensation by themselves, transformational leadership talks about way of reaching high-level loyalty and determination from the enthusiasts.

The brand in the name of Virgin was founded in 1968. Since that time it has grown beyond borders and be an internationally product. Its opportunity into a number of industries is a true reflection of success. Sir Richard Branson is the present chairperson of the group. He's well known for his stylish but competitive authority skills. Many analysts and scholars feature the success of Virgin Group to the creative command skills of Branson. In the process of growth, he needed over several high-risk ventures in a far more to diversify and improve his business. In most of his business plans, he focused on minute section of a specific market and provided quality products. This approach allows for creation of small monopolistic market segments with high income. One major contributor to Branson's success account is his ability to lead people in discovering ground breaking and profitable endeavors. Therefore, the command style depicted by Branson is a subject to be looked into in the next discussions. The type of leadership beliefs advocated by Branson has been infiltrate into the complete company.

Sir Richard Branson's leadership style comes in the category of transformational. He has an outstanding capability of bringing out the best out of humanity. Interpersonal and relational skills possessed by Branson are impeccable. He has close touch with your day to day activities of various companies within his group. The most frequent feature that has made him achieve great milestones in business development is the capability to stimulate and rally fellow associates in pursuit of a business opening. If the recent acquisitions are considered as an illustration, he were able to persuade fellow stakeholders in adoption of new strategy.

In his projects, he looks for people who are outgoing and ready to begin new businesses. His capacity building characteristics has made him an admirable leader of modern business. His concentration spans beyond the orthodox perspective of employees where the management expects the workers to execute to deserve reimbursement. The interest of Branson surrounds asking the question concerning whether somebody or worker is optimizing his / her capacity. He is interested also with people who are willing to take risks and the best in their responsibilities. For a long time, he has succeeded in bringing out the best out of his personnel, a core personality of transformational innovator. There is no doubt about the fact that Branson's success since 1970s is straight attribute to his attitude towards management of your team. In his approach, the hurdle existing between your employees and management is damaged.

In simple fact, many people working with him approaches business issues with a beliefs of attaining through impressive thinking and not adhering to the preset rules. Due to the ideologies propagated by Branson, all members in the business share similar prices. He produced his own style of management, priding himself on integrating the employees directly into his style and seeking their applying for grants ways of improving value to customers. Employees are expected to internalize these prices and respond relating to them. Integration of corporate and business values in control strategies means that there is little disturbance by external forces. Nevertheless, Sir Branson's approach does not mean that the employees are completely dependent on the chairman's thoughts. They may be equally accountable of their activities like fellow employees under transactional command. To be able to inspire his employees, Branson and his management team, especially recruiting management department have systems of boosting determination of employees through bonus items, commodity and profit posting, and internal advertising wherever possible.

Apart from Sir Branson's type in the success of virgin Group, there is a contribution of organizational culture in the business. Organizational culture existing in Virgin Group in quite complicated. The Group acts more than 100 companies functioning separately in the market sectors which are not entirely related. The common feature within ever before company in the group is the glamorous Virgin Brand. The brand remains unchanged in all companies operating in various businesses. This is a similarity, which sets much responsibility on each division or department to positively symbolize the brand. The image discloses an overall image of quality and invention inherent in the group. Throughout the creation of a special brand, the business has been able to consolidate and maintain desirable loyalty levels among the customers.

The diverse business stock portfolio evident in Virgin Group businesses is helpful in building and preserving loyalty in a variety of industries. That is the key reason as to the reasons the company has witnessed high levels of success. The managers in the business employ the concept of imagination to encourage employees to enhance their contribution to the group in whatever degree of hierarchy. They discourage the circumstance where employees sit back to execute instructions. Employees have the capacity of producing cutting-edge products, that your whole company will be able to deliver to the market. They can also formulate means of enhancing efficiency in the business. This is a superb feature of Virgin Group. Every individual has a say when it comes to products development. The management style in application at Virgin Group motivates members of personnel to compete. This will likely eventually create a desire in the hearts of employees to see the company succeed in order to be recognized as contributors to new and innovative business model.

There is no clear trim between management and leadership within Virgin Group. Transformational command emanates from professionals and top managers in the company. There are harmonized goals set by Sir Richard Branson and fellow company executives. Various companies within the group will work towards obtaining those goals. These ambitious goals range between usage of new technology, growth in international markets, jv with other existing companies and devotion among customers. Goals formulated at this level of management are communicated to every staff in the business. This is an advantageous strategy, which gives every employee an activity to accomplish in fostering the group's quest. The older management implores the employees to result their skills in such a way that they are going to complement the company. The notion behind this effort is to progress the idea that the complete benefits associated with the group will eventually lead to individual gains for every person included. The contribution in the group will in the end result in rewards for managers, employees, shareholders, executives, and customers similarly.

One desirable feature of Virgin Group is its organizational composition. Through its structure the company has succeeded in conquering the problems related to expansion. An expansive corporation like Virgin Group must explore ways of handling the considerable information within the company. Through its flat organizational chart, Virgin Group Limited has been able to handle it expansive business collection with much convenience. The reduced amount of horizontal string of order means that interdepartmental communication is improved.

As the amount of hierarchy steps down, the lower levels of management have a tendency to concentrate more keenly on the management of the company. Although leadership is usually encouraged one of the managers, it requires some degrees of strict management to make sure that the task has been accomplished. Different divisions within the company have different management function. At Virgin Group, managers have several goals of vast scope. Because of the fact that different divisions of the company are specialized in their procedures, well-trained and skilled mangers are required to take care of it effectively. Generally, managers utilized by the business have a company qualifications in their sector of specialty area. They need to also prove they are capable by showing a successful record of fulfillment. It is the single responsibility of professionals within Virgin Group to ensure that day-to-day businesses needed to keep the division jogging are executed effectively.

Organization is a vital ingredient in the success of Virgin companies. Since the group in an amorphous company comprising of several companies, group is very critical in piecing together the processes. To start with, the business has many goals to be achieved like expanding the global presence and building of customer loyalty. The top executive are accountable for deciding these goals and making them available to the complete company. Precisely the same professional must ensre that these goals are possible for them to be received well by employees. However, caution should be exercised to ensure that the employees are not underutilized. Challenging goals are important for the employees to believe that they are involved in meaningful responsibilities. Organization of these goals within the division will ensure that specific focuses on are created. Every division have distinct and professional goals aimed at increasing market share and improvement of product and services.

As the hierarchy developments to the junior staffs, goals become more precise and short lived. The targets establish at implementation levels are easily possible because they are incredibly specific. These specific goals are designed by division professionals with close mention of those of the entire group. This system of information copy enables the corporation to remain on track on the voyage to get together the targets established by executives. Virgin is a living evidence for the fact that this kind of organization is a significant prerequisite for business success. Wearing down of basic goals in to actionable items is a desirable feature exposed in Virgin's organization.

A healthy and workable organizational composition witnessed in Virgin Group's businesses is attained with many differing strategies. Transformational leadership is one of the strategies which have seen the business attain great levels of success. This plan enables folks of diverse backgrounds and capability to share a standard goal. Through working alongside one another, a team can combine its participants' efforts and work towards reaching common goal. Transformational authority gives everyone an equal chance to result his / her capability without reservations. A critical overview of Virgin Group business reveals that its functional and innovative labor force is because of the transformational leadership in place. This really is in contrast with transactional command where employees are paid out according to performance. The draw back with this kind of leadership is the fact it breeds greedy employees whose goal will be to amass rewards whenever you can.


In final result, there are many things to be learned from authority and management of Virgin Group Limited. The company has cut itself a distinct segment in various establishments. It has additionally proven that things are possible with determination and commitment. Throughout the able management of its Chairman, Sir Richard Branson, the management team has come up with a unique method of handling large level businesses like Virgin Group. To a sizable extend, the success of Virgin Group is directly attributable to the source of Sir Branson. He has succeeded in opening a fresh section of management, which deviates from normal methods. His liberal and everything accommodating approach is desirable. There is a formidable combine between management and command. A critical overview of these two elements reveals that there surely is no clears minimize between your two: an attribute that spent some time working well for the business.

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